File No. 19654/4–5.

Minister Sherrill to the Secretary of State.

[Extract.]
No. 30.]

Sir: I have the honor to report that on receipt of the department’s cable instructions of July 16 I communicated with the minister for foreign affairs. Duplicate copies of my letter are herewith inclosed. I have since then had an interview on the subject with the under secretary at his request. I pointed out the objectionable features in articles 8, 13, and 17, and that the wording of article 13 (being aimed not only at companies to be formed in the future but also at existing companies) affected the rights of the Central and South American Co., which belongs to citizens of the United States.

Before my said interview with the under secretary I had a long conference with the manager and assistant manager of the Central and South American Telegraph Co., so as to be as fully informed as possible on the business points involved. No indication of the attitude taken by the Argentine Government in regard to my letter was given by the under secretary, nor have I yet received any from any other source.

This cable concession is very popular here because it provides the country with its first direct cable to Europe, and this very popularity will tend to make the Government very loath to change the contract, for the proposers are reported to have declined to lay the cable if the future preference set out therein be stricken out. It is therefore probable a reply will be sent me similar to that received by the German legation.

I have, etc.,

C. H. Sherrill.
[Inclosure.]

Minister Sherrill to the Minister for Foreign Affairs.

Mr. Minister: Acting under instructions from my Government, I have the honor to say to your excellency that the United States Government supposes that the Argentine Government had in mind and did not intend any infringement on provisions of its treaty of 1853 with the United States in making a certain cable contract described as “El contrato ‘ad referendum’ celebrado entre el Poder Ejecutivo y don Juan Oldman, en representación de la ‘Western Telegraph Company para la constructión y explotación de un cavle directo entre la República Argentina y el continente europeo,” which contract was apparently signed June 3, 1909. My Government further instructs me to say that it supposes that the Argentine Government will wish to avoid any infringement of American rights under that article in the said treaty in any arrangements to be projected in the future which would tend to exclude possible American competition. In this connection may I call your excellency’s especial attention to articulo 8°, articulo 13°, and articulo 17° of said contract as reported in the “Diariode Sesiones de la Camara de Senadores,” dated July 3, 1909.

I avail myself of this occasion to renew to your excellency the assurances of my most distinguished consideration.

C. H. Sherrill.